How to Buy Bitcoin with Prepaid Card
Table of contents
Bitcoin has been quite popular since its launch in 2009, and we remember when, in 2010 and 2011, very few people were fascinated by the crypto world. However, the world as a whole is intrigued by Bitcoin and virtual currencies. With this in mind, many people are interested in buying Bitcoin and are considering various ways to buy it, either through bank transfers, debit or credit cards, or even with prepaid cards.
As more crypto enthusiasts want to hold a small part of the most popular cryptocurrency, crypto companies have developed many ways to buy Bitcoin, from a prepaid debit card to a prepaid visa card and visa gift card.
As a result, this article will discuss how to buy Bitcoin with a prepaid card with a few clicks. So, let’s get started.
What Is a Prepaid Card?
Prepaid cards are also known as prepaid debit cards, pay-as-you-go cards, or stored-value cards. It is a type of payment card that you can buy and load with money before using it to make purchases. Basically, it is like a gift card, but instead of being limited to a specific store, you can use it in any store that accepts the brand on the card (Visa, Mastercard, etc.). It’s like having a debit card without the need for a bank account.
They can be found at banks or retail locations like grocery stores and drugstores.
The card has a set balance, or you can add money and use it to make purchases until it is depleted. Once the money runs out, you need to reload the card before making any more purchases. They work similarly to other cards, where you can swipe or insert them into a payment terminal to make a purchase and, sometimes, withdraw cash from an ATM.
It’s also great for budgeting your money or for people trying to avoid debt.
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How to Buy Bitcoin with Prepaid Card via BitPay
It is said that buying Bitcoin with prepaid cards doesn’t make the process cheaper. However, as this article outlines, prepaid crypto purchases have several advantages for the buyer.
The first essential step is choosing the proper crypto exchange to purchase Bitcoin with a prepaid card. Most crypto exchanges and platforms, especially Bitcoin exchanges, support prepaid cards for purchasing crypto. In the following chapters, we discuss some of these exchanges in detail.
So, choose from the crypto exchanges that accept prepaid cards first. To make your steps as straightforward as possible, we will use the BitPay app, but you can also use the BitPay exchange on a desktop device by accessing bitpay.com.
Step 1: Create an Exchange Account or Log in
Once you decide upon a Bitcoin exchange, you must create an account. The account will allow you to deposit funds through your prepaid card, which you can use to purchase the amount of Bitcoin you want.
We also recommend following the identity verification process when you create your account to access the most important features; otherwise, some features could be restricted. Please note that the required documents may vary depending on the exchange, so check their website for specific information.
At this step, you can also select your payment method and input prepaid debit cards, such as prepaid Mastercard, Visa, or others. Thus, you simply go to the payment methods section and add new prepaid card details, such as CVV code, expiry date, and card issuer, or do it later in the process, as seen in the following steps.
Step 2: Purchase BTC with Prepaid Card
In your crypto exchange dashboard, you can access the buying option to purchase Bitcoin. Thus, tap the Buy button and start your first Bitcoin transaction on the crypto exchange.
The next step is selecting the amount of Bitcoin you intend to buy. So, in BitPay’s case, you must enter the USD you aim to sell for Bitcoin. However, you can check a crypto converter for the BTC to USD ratio.
Also, enter the wallet address where you want to receive your crypto.
Step 3: Pay with Prepaid Card
BitPay offers many offers from multiple payment partners to ensure you get the best exchange rates. Thus, after you choose our best deal, you’ll be redirected to BitPay’s partner website to input your prepaid debit card details to complete the transaction. You will receive your digital currencies in your own Bitcoin wallet only after the payment goes through.
Please note that checking the exchange rates before buying crypto with a prepaid debit card is essential.
Where Can You Buy BTC with a Prepaid Card?
1. Binance
Binance is currently the most popular cryptocurrency exchange, enabling users to buy, sell, and trade digital assets.
- Log in to your Binance account and tap on the Wallet option;
- Select the Deposit button, the Cash option, choose the currency you want to make the transaction and select your prepaid debit card;
- Confirm your transaction, and now you can buy crypto on Binance using money from your prepaid card.
Please note that the Binance platform must be part of the list of companies accepted by the bank issuing the prepaid card. Only bank-issued prepaid cards or crypto-friendly cards are accepted on Binance. Otherwise, the transaction will not take place on Binance. The CSS Binance team has obtained and highlighted this information.
3. CEX.io
Established in London, UK, this exchange has been in operation since 2013. It deals with several other cryptocurrencies, including Bitcoin. CEX.io supports several forms of payment, including prepaid cards.
- Log in or create a CEX.io account;
- Go to the Buy/ Sell page, choose Bitcoin, and enter the desired amount;
- Check the transaction fees and details;
- Choose to buy Bitcoin with a prepaid debit card.
3. Paxful
Paxful is also known as the eBay of Bitcoin because it connects Bitcoin buyers with sellers worldwide. This service gives buyers several options regarding their preferred mode of payment, including buying crypto with a prepaid card.
- Log in to your Paxful account, navigate to the Dashboards, and select either the Classic or Vendor Dashboard;
- Go to My Offers and click Deposit on the Security deposit section;
- Confirm the transaction by clicking Deposit in the confirmation window.
5. Bitpanda
This exchange, based in Vienna, Austria, is one of the most famous in Europe. Bitpanda was established in 2014, and like Coinbase, it offers an array of payment options, including prepaid cards.
- Log in and click the Deposit button from the main page;
- Then, select the currency you want to deposit;
- Select the payment method according to the card processor you have, enter the amount, and confirm the transaction.
6. Coinmama
Coinmama is one of the most straightforward exchanges where one can buy crypto with a prepaid card. This exchange was created in 2013 and has been operating ever since. The exchange allows crypto investors to buy and sell popular coins, including Bitcoin.
On Coinmama, you can deposit money when you want to buy a currency.
- Choose the desired currency, click Buy, and choose the debit/credit card option;
- Fill in the required information and confirm the transaction, and it’s done.
7. Paybis
Paybis is a UK-based exchange that supports the selling and buying of Bitcoin and five other cryptos through various payment methods, including credit and debit cards issued by Visa and MasterCard. Paybis also accepts prepaid cards.
You do not make deposits on the Paybis platform, only payments.
- Tap Buy on the crypto that you want to own;
- Insert your prepaid card details;
- Confirm the transaction.
We also recommend How to Buy Bitcoin with Cash App.
What Are the Advantages of Buying Bitcoin with a Prepaid Card?
Like any other widespread practice in the crypto industry, buying Bitcoin with a prepaid card has advantages. Some of these advantages are:
1. Ease of Use
Prepaid cards, like other cards, are easier to use than other methods of buying Bitcoin. You only need to provide the card details, and you are ready to purchase BTC.
2. Security
If you decide to buy Bitcoin using a prepaid card, you should know that it is more secure than other methods since less customer information is revealed in the process. Also, because it is not connected to a bank account, stealing it will not grant access to unlimited funds, only what is loaded on the card.
3. Instant Buy
Using prepaid cards ensures you get your Bitcoin almost instantly, compared to methods like bank transfer, which may take days to receive your coins. This saves time waiting for the purchased Bitcoin to arrive in the crypto wallet.
What Are the Downsides of Buying Bitcoin with a Prepaid Card?
Using prepaid cards also has its disadvantages, which are as follows:
1. Higher Fees
Fees for buying Bitcoin with a prepaid card are usually higher than other methods. For instance, a bank transfer may only cost 1% instead of the 5% charged by some platforms.
2. Few Platforms
Not many cryptocurrency exchanges support the use of prepaid cards to buy Bitcoin. This makes the options quite limited, and customers may be unable to use their preferred exchanges for this process.
3. KYC
One of the practices cryptocurrencies are based on is anonymity. Buying Bitcoin using prepaid cards strips users of such privilege, as KYC is mainly required to buy Bitcoin using this method.
4. Limited Purchase
Some platforms do not allow prepaid cards to buy large amounts of Bitcoin, which is a major problem if you wish to buy a significant amount at once.
Final Thoughts on How to Buy Bitcoin With Prepaid Card
Purchasing Bitcoin could easily become the most common trade of the 21st century. Despite increased interest in buying and selling cryptocurrencies, it is essential to note that exchange platforms are centralized and prone to hacking. We recommend reading the Bitcoin price prediction before investing.
In that case, leaving your purchased Bitcoins on the exchange platform is unsafe. It would be better to transfer your coins to your crypto wallet.
FAQ
Yes, you can buy Bitcoin with prepaid debit cards, but you must check before creating an exchange account. Also, it is essential to look at the type of prepaid cards accepted, as some crypto exchanges accept Vanilla gift cards, prepaid Mastercards, or others to buy Bitcoin instantly.
No, Coinbase does not accept prepaid cards. Only Visa and MasterCard debit cards can be used to purchase crypto.
The process is usually similar for most crypto exchanges. You must log in or create your exchange account, choose your crypto assets, in our case, Bitcoin, link your wallet, and proceed to pay with the prepaid credit card or debit card while completing the card details.
Editorial Team
Reporter at Coindoo
